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Inquiry against PSO begins

August 08, 2012

ISLAMABAD, Aug 8: The Competition Commission of Pakistan (CCP) has began a probe into allegations that the Pakistan State Oil (PSO) is forcefully selling lube oil to its cartage contractors by deducting the price of such products from the payments due for cartage services.

The inquiry was initiated after the commission received several complaints from some PSO cartage contractors.

Given the potentially anti-competitive nature of such actions, CCP has started to probe the matter in detail and solicited PSO’s response in the matter. However, despite a reminder, the reply is still awaited.

Forced sale of products may constitute an anti-competitive practice prohibited by the Competition Act, 2010.

The practice of forced sales, which places unrelated obligation on trading parties for the conclusion of contracts, is barred under law and can amount to a prohibited agreement/practice or an abuse of dominance under the Act.

It would be pertinent to mention that CCP has consistently strived to promote competition and curb anti-competitive behavior in Pakistan economy.